Compare Savings Accounts in New Zealand
Find the highest interest rate on your savings, and know which banks require minimum deposits
Updated 8 May 2022
Regular savers don't get a lot for their money right now, but it's still possible to earn above what major banks offer. We have all the best savings accounts and reveal all you need to know to maximise bonus interest and your overall return.
Top Bank Savings accounts interest rates:
Our guide covers:
- Rabobank - Notice Saver 60 days – 1.85% ($0 minimum deposit)
- Kiwibank - Notice Saver 90 days – 2.15% (minimum deposit: $2,000)
- Heartland Bank YouChoose – 0.50% ($0 minimum deposit)
- Rabobank - PremiumSaver - 0.80% to 1.60% ($0 minimum deposit)
Our guide covers:
Know this first: What is the difference between a savings account and a term deposit?
There are three key differences, with savings accounts and term deposits offering unique advantages. We explain the key differences below:
Peer to Peer Investing Alternatives
Peer to peer lenders, such as Lending Crowd and Squirrel, offer attractive prospects if you're prepared to invest in secured loans for personal and business borrowers. Peer to peer lender can offer as much as 7.00% p.a (or more) which is higher than most term deposit rates that sit around 1.50% p.a. To learn more, we suggest reading:
Our guide to peer to peer lending explains the pros and cons and everything you need to know.
There are three key differences, with savings accounts and term deposits offering unique advantages. We explain the key differences below:
- Interest rates: A term deposit offers a fixed interest rate for the life of your investment. For example, “2.50% p.a. for 3 months” or “2.99% p.a. for 3 years”. Interest rates will usually be higher the longer the term is, as banks pay more for the certainty of re-lending your money for longer. A savings account offers a floating interest rate which means it can change at any time. Savings accounts, in most cases, offer lower interest rates than term deposits because you can access your money at any time. Savings accounts are perfect for earning interest month-to-month while having the flexibility to access your money at any time.
- Withdrawals: Term deposits are, as their name states, fixed for a ‘term’. If you need to access your money, a penalty will be applied. This is usually a loss of interest rather than any fee taken you’re your term deposit investment. By comparison, a savings account allows you to withdraw money at any time. Some savings accounts, such as the Kiwibank notice saver, require you to give 32 or 90 days notice to access your money.
- Bonus interest: In some instances, savings accounts pay a ‘bonus interest’ amount if you avoid withdrawals. This is to encourage you to save. It also gives the bank certainty to lend the money in the long-term. You may see offers like “0.25% + 1.00% bonus interest, paid monthly”. This means that you’ll earn 1.25% p.a. if you don’t make any withdrawals, but only 0.25% p.a. if you do. A term deposit doesn’t offer bonus interest – what you sign up for is the total interest you’ll earn.
Peer to Peer Investing Alternatives
Peer to peer lenders, such as Lending Crowd and Squirrel, offer attractive prospects if you're prepared to invest in secured loans for personal and business borrowers. Peer to peer lender can offer as much as 7.00% p.a (or more) which is higher than most term deposit rates that sit around 1.50% p.a. To learn more, we suggest reading:
Our guide to peer to peer lending explains the pros and cons and everything you need to know.
Top Savings Accounts
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Rabobank - Notice Saver 60 days – 1.85%Interest Rate: 1.85% p.a.
Min/max deposit: $1,000, on balances up to $5 million How to open: Apply via Rabobank's website Withdrawals allowed? Yes |
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Kiwibank - Notice Saver 90 days – 2.15%Interest Rate: 2.15% p.a.
Min/max deposit: $2,000, no maximum How to open: Apply via Kiwibank's website Withdrawals allowed? Yes, but account holders must give 90 days notice |
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Heartland Bank YouChoose – 0.50%Interest Rate: 0.50% p.a.
Min/max deposit: $0, on balances up to $100,000 How to open: Apply via Heartland's website Withdrawals allowed? Yes, with no penalty. Special Mention: Acts as an everyday bank account; visit our Best Bank Accounts guide for more details. |
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Rabobank - PremiumSaver - 0.80% - 1.60%Interest Rate: 0.80% - 1.60% (Earn 1.0% interest rate if your PremiumSaver end of the month balance increases by at least $50 from the start of the month. If your PremiumSaver balance at the end of the month is not at least $50 higher than it was at the start of the month (excluding any interest paid during the month), then the entire balance will earn 0.30% p.a. for that month.)
Min/max deposit: $0, on balances up to $100,000 How to open: Apply via Rabobank's website Withdrawals allowed? Yes, with no penalty. Be aware that if your balance drops $50 between months, the bonus interest won't be paid. |
Savings Account FAQs
Who offers savings accounts?
Most banks offer savings accounts – our table has the latest offers and all the details you need to know.
Can I open a joint savings account?
Yes – banks allow joint savings account. They’re a helpful way for two people to achieve savings goals, and combining an account may make it easier to reach bonus interest targets. But a joint account can also cause issues that arise when one partner appears to misuse the money. For this reason alone, having your own savings account can offer far more personal security.
What is the best bank account for children?
Our best bank accounts for kids guide highlights everything you need to know and the best accounts available. Best of all, banks and credit unions encourage kids to save by paying above-market interest rates.
How do I open a savings account?
The best way is to open online on the bank's website or by visiting the bank’s branch. You’ll need to provide a few documents (like an ID and proof of address) to validate the savings account. Once approved, your savings account is ready to accept deposits.
Savings account tips to keep you focused on your goals
- Finalise a goal: There’s no point to making sacrifices to save if you don’t have a plan. For example, “saving $5,000 in one year” is realistic and has a timeframe, as does “saving $2,500 for a car by January”. You can even rename your savings account to match your goal, i.e. “Fiji Trip SEP” or “Wedding”. This helps resist the temptation to plunder your savings account – taking out $500 from the ‘Mum’s Birthday Trip’ account to go on a hen’s party does not align with the goals.
- Make the goal happen: The best way is to ‘auto-save’ by opening up a savings account and deposit a fixed amount right after you get paid. This way, you can’t leave savings as an afterthought – it happens first.
- Cut costs: Our ways to save guide has featured in Stuff.co.nz and offers twenty tips to cut back on non-essential expenses. You can see what applies to you and make an effort to eliminate what you don’t need or want. Our Barefoot Investor guide has further tips for living a financially secure life.
- Look at your savings every six months: Are you on track? Review your savings level every six months. Also, make sure you’re getting the best deal by comparing the top savings accounts.
- Help your kids out: Our best bank accounts for kids offers the best deals available right now. If you start them off with $50 or $100, they’ll be encouraged to save as well and form good money habits.
